Tip tips for managing your finances on holiday

Ever come back from holiday feeling like a victim of ID fraud, only to find out the financial damage was self-inflicted?

Going on holiday can be great fun for you. However, your personal finances might take a hit.

It can be easy to get carried away and overspend on your holiday. Here are a few tips to keep your finances under control whilst overseas.

1. Set a budget

Before jetting off, set a realistic budget which you can stick to so that you have enough spending money to enjoy yourself but not overindulge. Whilst you might not want to limit your spending overseas, it is important to take note of exactly what you can and cannot afford.

2. Research the currency

By doing some homework before you go, you can get an idea of how much everyday items cost at your destination. Not only will this help you set a budget but it can also give you a rough idea of what you will be excepted to pay.

For example, in some cases you might believe that you are paying too much for an item, however, this is just the local price. Watch the markets to see how much the pound is worth against the currency of the country you intend on visiting. It could also be worth shopping around to find the best exchange rates to make your money go that little bit further.

3. Watch out for tourist traps

If you have a rough idea of how much items will cost, you can then get a better concept of what you should pay. This way you can avoid being overcharged by tourist touts.

If you are heading to an area that is particularly popular with tourists, items might be subject to local tourist inflation.

Finally, one way to manage your finances when overseas would be to take a prepaid card. They are simple and effective, you top up money onto the card and once it runs out, you cannot spend anymore.

They are not attached to bank accounts or credit cards meaning no overdraft facilities.